ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Perhaps the shift was not large enough. Perhaps it was the magnetism of the 50-day moving average (DMA). After the Federal Reserve released the minutes from its last meeting on monetary policy, the U.S. dollar index (DXY0) promptly weakened. The dollar closed the day marginally lower after trading for a small gain in the morning. … Read more
A little over two years ago, El Pollo Loco Holdings (LOCO), a quick serve restaurant that “offers individual and family-sized chicken meals, Mexican-inspired entrees, sides, and, alternative proteins,” was mentioned as a potential acquisition target of Jollibee Foods Corp, the largest fast food franchisor in the Philippines. LOCO closed that day at $26.25 and with … Read more
AT40 Status: 60.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 68.4% of stocks are trading above their respective 200DMAs VIX Status: 11.0 (volatility index) Short-term Trading Call: neutral Commentary Nothing says “strong sentiment” like a stock market that actually rallies on a strong U.S. jobs report: the fear of … Read more
(“Above the 40” uses the percentage of stocks trading above their respective 40-day moving averages [DMAs] to assess the technical health of the stock market and to identify extremes in market sentiment that are likely to reverse. Abbreviated as AT40, Above the 40 is an alternative label for “T2108” which was created by Worden. Learn … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
On January 9, 2017, the Federal Housing Authority (FHA), run by the Department of Housing and Urban Development (HUD), announced a cut in the premium homebuyers pay for mortgage insurance. This policy change has the distinction of being one of the first, if not THE first, reversals of the post-Obama era (the L.A. Times reported … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
The UK’s FTSE 100 remains a big post-Brexit winner. This headline from the Telegraph for January 10, 2017 says it all: “FTSE 100 records longest run of closing highs since 1984 as Brexit fears hurt pound.” The FTSE 100 was created in 1984. Never since that time has the index notched nine straight all-time highs … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 27, 2016. Click here to read the entire piece.) The SPDR Gold Shares (GLD) has increased 6.3% since December 15, 2015. The U.S. Federal Reserve hiked its interest rate the next day and made its second hike for this cycle … Read more